Company Number: 14849809

Analysis Date: 2025-07-29 18:00 UTC

1. Risk Rating: MEDIUM
   While the company is active and compliant with filings, the very low net asset base and minimal equity raise concerns about financial resilience.

2. Key Concerns:

• Low Net Assets and Equity: Net assets declined sharply from £675 in 2024 to just £87 in 2025, indicating erosion of capital and limited financial buffer.
• Thin Working Capital: Net current assets remain positive but small (£772 in 2025), which may constrain operational liquidity and ability to meet short-term obligations promptly.
• Single Director and Employee: The company’s operational scale is minimal with only one director and one employee, which may affect operational stability and succession risk.

3. Positive Indicators:

• Timely Filings and Compliance: No overdue accounts or confirmation statements, showing good regulatory compliance and governance discipline.
• Positive Net Current Assets: Despite being small, the positive working capital suggests the company can currently cover short-term liabilities.
• Clear Control Structure: One individual (Ms. Henriques) holds full ownership and control, simplifying decision-making processes.

4. Due Diligence Notes:

• Investigate the causes behind the significant drop in net assets and equity between 2024 and 2025, including examining profitability and retained earnings.
• Review cash flow statements if available to assess liquidity trends beyond static balance sheet figures.
• Confirm the business model and revenue streams given the micro company size and single staff member, to evaluate sustainability.
• Assess any contingent liabilities or off-balance-sheet risks not evident in the micro entity accounts.
• Evaluate the director’s experience and capacity to manage and grow the company given the sole director and employee setup.